European red tape ‘stifling West Midlands R&D’

EUROPEAN UNION bureaucracy is deterring small firms from accessing research funding, Business Voice WM has warned.

And it has urged the Government to persuade the European Commission to streamline the system.

In a letter to the Department for Business, Innovation and Skills, James Watkins, executive director, said: “The procedures that are currently in place are far too onerous, especially for small and medium sized enterprises who have little time and resource to invest in these applications.

“For a small business to obtain research and development funding, it cannot simply put in a request, with a clear business case supporting its application. Instead, the small business first needs to find a company or academic institution to team up with that would be able to undertake the research work.

“The drawbacks are twofold. It does not allow for investment in a company’s existing R&D capability and it is a time consuming process for a small business that cannot spare much time and may not wish to go down this path if, after much effort, there is a possibility its funding application could be refused.”

Mr Watkins said AWM, now being wound up, had commissioned a private company  to provide a match-making service between the potential applicant for funds and a research partner, but the service was little known and “did not address the unnecessary hurdles in place to try and access these funds”.  

“The European Commission should reverse its procedures and allow a business to make an application for funding – in principle. If agreed then the applicant could seek a research partner before resources are released.”

He said: “If we are to ensure that there is a bigger take up of R&D grants then it is critical that the process to access these funds is improved.”